92
Athletic Footwear Industry

Athletic Shoes Industry

Embed Size (px)

Citation preview

Page 1: Athletic Shoes Industry

Athletic Footwear Industry

Page 2: Athletic Shoes Industry

History of Athletic Footwear Market

• ShapeThe sneaker as it’s commonly referred to as has evolved in many forms such as shape, design, features, functionality.• DesignThe design element of the sneakers has evolved over the centuries. • FeaturesWhen sneakers were first created the main feature was to cover your foot and provide a new level for comfort.• FunctionalityThe original purpose was to for all purpose uses such as cleaning, gardening, going out.

Page 3: Athletic Shoes Industry

Evolution of the athletic shoes

• 1800’s - Athletic shoe companies have been around since the late 1800’s, and have evolved tremendously over that time.

• 1830’s - Liverpool Rubber Company developed the Plimsoll shoe• 1895 - The J.W. Foster company• 1916 - Keds • 1917 - Converse All Stars • 1936 - Adi Dassler• 1950 - Adidas• 1970 - Nike• 1980 - Air Jordans’• 21st century - Nike has dominated the sports landscape as the leading

athletic shoe

Page 4: Athletic Shoes Industry

Market Overview

Competitive environment of different brands

Marketing and Advertising Strategy

Competitive and Market Strategy

Page 5: Athletic Shoes Industry

Market Leaders

Page 6: Athletic Shoes Industry
Page 7: Athletic Shoes Industry

INTRODUCTION

Page 8: Athletic Shoes Industry

About NIKE

• NIKE, Inc. is the world’s leading innovator in athletic footwear, apparel, equipment and accessories that is engaged in the design, development and worldwide marketing and selling.

• Headquarters: Beaverton, OR, USA• Founded: January 25, 1964

Page 9: Athletic Shoes Industry

Mark Parker

Page 10: Athletic Shoes Industry

Bill Bowerman & Phil KnightFounder

Page 11: Athletic Shoes Industry

MISSION STATEMENT

"To bring inspiration and innovation to every athlete in the world"

11

VISION STATEMENT

Innovate for better world

CORE VALUE

honesty, competitiveness, and teamwork

Page 12: Athletic Shoes Industry

TIMELINE

1964 - Phil Knight and Bill Bowerman form Blue Ribbon Sports as a

redistributor of Onitsuka Tiger Shoes.

1971 – First appearance of Swoosh

1974 – Waffle Trainer was introduced, quickly

becoming the best-selling training shoe in the US.

12

Page 13: Athletic Shoes Industry

TIMELINE

1981 - BRS, Inc. now officially known as Nike,Inc.

1982 – Air Force1 basketball shoe was released

1984 – Nike signed Michael Jordan to an endorsement contract, release Air Jordan shoes

1987 – Nike Airmax1 released, first with visible air bubble

13

Page 14: Athletic Shoes Industry

TIMELINE

1990 - Nike opened first Niketown in Portland.

1996 – Nike signed Tiger Woods

1999 – Bill Bowerman dies at age 88

2000 – Nike Shox introduced

14

Page 15: Athletic Shoes Industry

TIMELINE

2003 – Nike acquired Converse and signed Lebron James for an $87m endorsement contract

2006 - Nike and Apple released Nike + iPod kit.

2012 – Nike releases their most expensive shoes to date, the Lebron X ($315)

15

Page 16: Athletic Shoes Industry

16

The SWOOSH logoGraphic design created by Caroline Davidson in 1971. It represents the

wing of the Greek Goddess

Page 17: Athletic Shoes Industry

4Ps of NIKE

17

Page 18: Athletic Shoes Industry

PRODUCT Nike’s foremost focus is athletic footwear, designed for sports

and everyday usage with the brand name. The production facilities are located close to the raw material

to have low labor prices. The company presently sells roughly 300 models of athletic

shoes in 900 styles– Running – Basketball – Training – Football – Soccer – Skateboarding – Golf – Tennis – Children’s shoes– Customize with NIKEiD

18

Page 19: Athletic Shoes Industry

PRICE

Nike charges high prices or premium prices for i high quality products and its famous brand. The pricing based on the basis of premium segment as target customers.

Nike’s pricing strategy use of vertical, take part in more than one channel level operations for control costs and influence product pricing.

The company has designed its pricing structure in a way to make it competitive to other shoes sellers.

The price of the products is variable depending on the type and the size for example a comfortable and good pair of shoes would cost from 70 to 150 dollars.

19

Page 20: Athletic Shoes Industry

PLACE

Nike shoes are carried by multi-brand stores and the exclusive Nike stores across the global.

Nike sells its product to about 25,000 retail accounts in the U.S. and in almost 200 countries around the world. This means that place strategy is used by Nike.

In the international markets, Nike sells its products through independent distributors, licensees and subsidiaries.

Independent distributors need not adapt to local pressures because the 4Ps of marketing are managed by distributors.

20

Page 21: Athletic Shoes Industry

PROMOTION

21

Promotion is largely dependent on finding accessible store locations. It also avails of targeted advertising in the newspaper and creating strategic alliances.

Nike has a number of famous athletes that serve as brand ambassadors such as the Brazilian Soccer Team (especially Ronaldino, Renaldo, and Roberto Carlos), Lebron James and Jermane O’Neal for basketball, Lance Armstrong for cycling, and Tiger Woods for Golf.

Page 22: Athletic Shoes Industry

PROMOTIONNike also sponsors events such as Hoop It Up and The

Golden West Invitational.Nike’s brand images, the Nike name and the

trademark swoosh, make it one of the most recognizable brands in the world.

Nike’s brand power is one reason for its high revenues.

Nike’s quality products, loyal customer base and its great marketing techniques all contribute to make the shoes empire a huge success.

22

Page 23: Athletic Shoes Industry

market segmentation, target

markets and positioning

23

Page 24: Athletic Shoes Industry

MARKET SEGMENTATION

• Niche marketing, narrowly defined customer group seeking a distinctive mix of benefits.

• In the lifestyle and apparel market targets consumers who identify with sport as a way of life and are brand conscious.

24

Page 25: Athletic Shoes Industry

MARKET SEGMENTATIONGeographic segmentation

Density: Urban and semi-urban cities

Demographic segmentation– Age: 15 to 35– Gender: Male and female– Income: Middle to high income– Social class: Upper middle, lower upper and

upper class25

Page 26: Athletic Shoes Industry

MARKET SEGMENTATION

Customer Profile – Athletes– Gym regulars– Sports enthusiasts– Brand freaks– Image seekers

26

Page 27: Athletic Shoes Industry

MARKET SEGMENTATIONNike has divided its customers into the following way:

1. Y Women2. Y Men3. Y Girls

3-36 months 3-8 years 8-15 years

4. Y Boys 3-36 months 3-8 years 8-15 years

27

Page 28: Athletic Shoes Industry

MARKET SEGMENTATIONPsychographic segmentation

Active people who enjoy high quality sport footwear. Customer who feel so strongly that the firm can meet their

needs best that any competitors are virtually excluded from their consideration.

Consumers that wear Nike just want to build confident or make other feel they wearing a branded shoes but not ordinary shoes but not for sport purpose.

For youth, they think Nike shoes is a fashion lifestyle and they wear it just to follow fashion trend.

28

Page 29: Athletic Shoes Industry

MARKET SEGMENTATIONPsychographic segmentation

Active people who enjoy high quality sport footwear. Customer who feel so strongly that the firm can meet their

needs best that any competitors are virtually excluded from their consideration.

Consumers that wear Nike just want to build confident or make other feel they wearing a branded shoes but not ordinary shoes but not for sport purpose.

For youth, they think Nike shoes is a fashion lifestyle and they wear it just to follow fashion trend.

29

Page 30: Athletic Shoes Industry

MARKET SEGMENTATIONBehavioral segmentationMost of them preferred Nike to Adidas, but felt that Nike was overpriced. Those who preferred Adidas, however showed great brand loyalty to the brand. They rate attributes like quality, price, durability, comfort, style, advertising and innovation on a scale of 10. The results that we obtained is graphically shown below

30 Quality Durability Price Comfort Style Advertising Innovation

Nike

Adidas

Page 31: Athletic Shoes Industry

MARKET SEGMENTATIONBehavioral segmentation

31

Nike

Adidas

Customers purchase products through Nike towns, Nike stores, Nike outlet stores, and online website nike.com

Customer attitudes : Customers have good attitude to Nike products. They share experience to their friends and family including review products on internet which are spread to social very quickly.

Advertising, brand ambassador and special sport occasion have effect to purchasing behavior of customers. For examples, FIFA world cup, PGA grand slam of golf.

Page 32: Athletic Shoes Industry

MARKET SEGMENTATIONBehavioral segmentation

32

Nike

Adidas

Customers purchase products through Nike towns, Nike stores, Nike outlet stores, and online website nike.com

Customer attitudes : Customers have good attitude to Nike products. They share experience to their friends and family including review products on internet which are spread to social very quickly.

Advertising, brand ambassador and special sport occasion have effect to purchasing behavior of customers. For examples, FIFA world cup, PGA grand slam of golf.

Page 33: Athletic Shoes Industry

TARGET MARKET

The market segment targeting is quite essential to differentiate itself from competitors.

Nike offers its consumers the option to custom built their own shoes on its website, a huge differentiation that Adidas does not have.

Nike also has a large of innovative products, including the Nike+, in collaboration with Apple.

33

Nike

Adidas

Page 34: Athletic Shoes Industry

PRODUCT POSITIONING

Nike positions itself as the market leader of sports footwear with high price, high quality, high technology and uses the greatest athletes and the record of their achievements in advertising.

The swoosh logo together with the Just Do It slogan expresses a high ambition and a will for victory, which is a part of Nike’s brand image and corporate culture.

Nike, the largest seller of athletic footwear in the world .Nike has been launching new technically advanced shoe models from time to time

34

Nike

Adidas

Page 35: Athletic Shoes Industry

PRODUCT POSITIONING

However, the company still faces many challenges in• the changing fashion trends,• the falling sale of its higher- priced shoes• increasing competition

35

Nike

Adidas

Page 36: Athletic Shoes Industry

WHY TO BE NO.1??

36

Page 37: Athletic Shoes Industry

WHY NIKE IS THE LEADER?

Nike places a significant weight on marketing and its products. Nike agressively bonds the contracts with highly successful and

influential athletes, coaches, teams and to popularize its footwear. Nike focus on the customer satisfaction. Nike invests a lot in its product R&D , 3 primaries area:

Biomechanics Physiology Sensory

Its innovation in products includes:– “Nike with Apple”– Designs your own shoes

37

Nike

Adidas

Page 38: Athletic Shoes Industry

HOW TO MAINTAIN NO.1

RANKING?

38

Page 39: Athletic Shoes Industry

HOW TO MAINTAIN NO.1 RANKING?

Nike actively responds to trends and changes in consumer preferences by

Adjusting the mix of existing product offering, Developing new products, style and categories, and

Influencing sports and fitness preferences through aggressive marketing.

Its primary areas of marketing remain internet, TV and magazines

The only criterion where the company faces tough time is its high competitive prices.

The competitors like Adidas that offer products at lower price compared to Nike.

39

Page 40: Athletic Shoes Industry

40

Page 41: Athletic Shoes Industry

About Adidas Group

• A German multinational corporation that designs and manufactures sports clothing and accessories.

• This holding company consists of the Reebok sportswear , TaylorMade-Adidas golf company (including Ashworth), Rockport, and 9.1% of FC Bayern Munich.

• Adidas is the largest sportswear manufacturer in Germany and Europe and the second biggest sportswear manufacturer in the world.

• Headquarters: Herzogenaurach, Bavaria, Germany• Founded: August 18, 1949

41

Page 42: Athletic Shoes Industry

FOUNDER• Adolf "Adi" Dassler• His brother Rudolf returned

to Herzogenaurach to join his younger brother's business

• Rudolf Dassler became founder of Puma.

42

Page 43: Athletic Shoes Industry

MISSION STATEMENTThe adidas Group strives to be the global leader in the sporting goods industry with brands built on a passion for sports and a sporting lifestyle. We are committed to continuously strengthening our brands and products to improve our competitive position.

43

Vision• The company is innovation and design leaders who seek to help athletes of

all skill levels achieve peak performance with every product we bring to market.

• The company are consumer focused and therefore we continuously improve the quality, look, feel, and image of our products and our organizational structures to match and exceed consumer expectations and to provide them with the highest value.

• The company are a global organization that is socially and environmentally responsible, that embraces creativity and diversity, and is financially rewarding for our employees and shareholders.

• The company are dedicated to consistently delivering outstanding financial results.

Page 44: Athletic Shoes Industry

44

Core value• Performance

Sport is the foundation for all we do and executional excellence is a core value of our Group.

• PassionPassion is at the heart of our company. We are continuously moving forward, innovating, and improving.

• IntegrityThe company are honest, open, ethical, and fair. People trust us to adhere to our word.

• DiversityThe company takes people with different ideas, strengths, interests, and cultural backgrounds to make our company succeed. We encourage healthy debate and differences of opinion.

Page 45: Athletic Shoes Industry

TIMELINE

45

Gebrüder Dassler Schuhfabrik ( 1924-1936 )• Adolf "Adi" Dassler started to produce his own sports shoes in his mother's wash

kitchen in Herzogenaurach, Bavaria after his return from World War I• In July 1924, his brother Rudolf returned to Herzogenaurach to join his younger

brother's business, which became Dassler Brothers Shoe Factory• Business boomed and the Dasslers were selling 200,000 pairs of shoes each year

before World War II

World War II and company split ( 1945 )• Both brothers joined the Nazi Party• The Dassler factory, used for production of anti-tank weapons during the war in April

1945,• Adi Dassler's wife, Käthe, convinced the GIs that the company and its employees were

only interested in manufacturing sports shoes. • American occupying forces subsequently became major buyers of the Dassler brothers'

shoes.

Page 46: Athletic Shoes Industry

46

The brothers split up ( 1947 )• Rudolf forming a new firm that he called Ruda – from Rudolf Dassler, later rebranded

Puma• Adi forming a company formally registered as Adidas AG from Adi Dassler on 18 August

1949. • "Adi" (a nickname for Adolf) and "Das" (from "Dassler").

The Tapie affair ( 1987- 1994)• After the death of Adolf Dassler's son Horst Dassler in 1987, the company was bought

in 1989 by French industrialist Bernard Tapie, • Tapie was at the time a famous specialist of rescuing bankrupt companies, an expertise

on which he built his fortune.• Tapie decided to move production offshore to Asia. • In 1992, Tapie mandated the Crédit Lyonnais bank to sell Adidas• Tapie filed for personal bankruptcy in 1994

Page 47: Athletic Shoes Industry

47

Post-Tapie era (1994-2006)• In 1994, combined with FIFA Youth Group, SOS Children's Villages became the main

beneficiary. • In 1997, Adidas AG acquired the Salomon Group and its official name was changed

to Adidas-Salomon AG • Adidas also acquired the Taylormade Golf company and Maxfli, which allowed them

to compete with Nike Golf.

The World's First Intelligent Shoe (2005)• In 2005, Adidas introduced the Adidas 1, the first ever production shoe to use a

microprocessor. Dubbed by the company• in 2005, on 3 May, Adidas sold their partner company Salomon Group

Acquired Reebok (2006)• In 2006, Adidas acquired British rival Reebok as partner.

The Revenue peak (2012)• End of 2012, Adidas is reporting the highest revenues ever and Chief Executive

Herbert Hainer expresses optimism for the year ahead.

Page 48: Athletic Shoes Industry

The Adidas Logo

Logo #1: The Three Stripes Logo #2: The Trefoil Logo #3: The Three Bars

The company simple placed three black stripes on everything that they manufactured

This logo is still used on some of their products, particularly their line of classic products

Most of their high-performance products have moved on to a third and final logo

The three elements in this and all other Adidas logos are said to represent Dassler’s three sons.

This logo was chosen because the company wanted a logo that represented the fact that their brand was a lot larger and more diverse that it used to be while still keeping the classic Adidas look.

Adidas Logo the Three Bars, This logo is the latest one that has been introduced, and it represents the finest equipment that Adidas sells

48

Page 49: Athletic Shoes Industry

4Ps

49

Products Providing high quality products aimed at

providing the best value to the costumer. The products portfolio is continuously

enhanced through creations and innovations throughout the companies various categories. This is pursued in order to cater to the various needs and wants of consumers worldwide.

Well-known brands for sports apparels, equipment and accessories, the Adidas group has a diverse brand portfolio consists of: Adidas , Reebok , TaylorMade Adidas Golf , Rockport, CCMHockey

Page 50: Athletic Shoes Industry

4Ps

50

Price Using adapted pricing strategies,

depending on which market they are operating in, so as to achieve its goals.

Penetrating attack markets with lower prices or using market skimming tactics, for instance.

In intense competition in the global market, the company is involved in regular evaluation of its price to ensure that the products stay competitive at the point of sale.

Page 51: Athletic Shoes Industry

4Ps

51

Place Distribute its products to the consumer

with a strong focus on controlled space, including: Own-retail business, e-commerce, Shop-in-Shop, Joint ventures with retail partners, mono-branded franchise stores, co-branded stores with sports organizations and other brands. Hence, a high level of brand control is provided.

In addition, an “integrated distribution roadmap” has been set up to ensure further growth and to increase brand presence in under-penetrated, affluent cities, without cannibalizing their own brands and distribution mix.

Page 52: Athletic Shoes Industry

4Ps

52

Promotion Different promotional tools are used in

order to reduce the number of lost customers and to increase sales.

The group has set up an unparalleled portfolio of promotion partnerships with international recognized sports associations (e.g. UEFA, FIFA, NBA, NFL, and NHL).

Commercials, ads, apps for smartphones, product placement, sponsorships for athletes and sport events (e.g. Berlin Marathon 2011)

Page 53: Athletic Shoes Industry

Market Segmentation

53

GEOGRAPHIC SEGMENTATION: divided the market into different units of location • neighborhood, • states,• regions• cities • countries. • Adidas Bold 2009 have operated in urban and

semi-urban cities of India. DEMOGRAPHIC SEGMENTATION: divided into different segments based on the variables of family size, family life cycle, income, gender, age and etcThe demographic segmentation of Adidas as follows:• Age 15-36• Income level: $15,000• Social Class: Upper middle, upper class and

lower upper.• Gender: Both male and female

PSYCHOGRAPHIC SEGMENTATION: the analysis of the different personalities of each consumers. The only key is to be different.• Achievers• Well-experienced• Hard workers• Goal achievers

BEHAVIORAL SEGMENTATION: This segment divided the consumers according to their attitude, knowledge, response and use of the product. Below are the behavioral segmentation for Adidas:• Benefits• Gym regular users• Sports lovers• Athletes• Image seekers• Brand freaks

Page 54: Athletic Shoes Industry

Target Markets• sports personalities involved in various sporting activities such as

soccer, rugby, athletics and basketball. • young people• male and female• averagely between the ages of 10 to 30

54

Page 55: Athletic Shoes Industry

Product Positioning

55

adidas • the brand strive to be the

globally leading and most popular sporting goods brand

• focus is mainly on innovation and technology

adidas Originals• the first brand leveraging its

sports assets in the lifestyle area

• it is regarded as a legitimate sports lifestyle brand.

• Snoop Dogg. Or Rihanna. Or Katy Perry.

adidas Sport Style • "Future of Sportswear" • includes the labels Y-3• Porsche Design Sport

adidas NEO, From the track to the catwalk, it helps you to "Style your Life"

Reebok • American-inspired sports brand with the clear objective

to become the leading fitness brand in the world

Page 56: Athletic Shoes Industry

Strategies Creating shareholder value Investments focused on highest-potential markets and channels Creating a flexible supply chain Leading through innovation Develop a team grounded in company heritage Becoming a sustainable company Brand’s Broad and Unique Product Portfolio Brand Extension Strategies

56

Adidas Core Competencies – Technology– Customer focus– Brand recognition– Supply chain– Collaboratively competitive

Page 57: Athletic Shoes Industry

Why Adidas is number two compare to Nike?

57

• Nike has an overall better selection of gym shoes, and basketball shoes compare to than Adidas.

• Nike have wider variation of types of shoes which ranges anywhere from boots, to basketball shoes.

• Nike also are endorsed by higher profile athletes than Adidas does. • Nike has players like Kobe, and Cristiano Ronaldo while Addidas has Kevin

Garnett, who is passed his prime. • Nike's shoes are also more stylish, and well known.• Nike have higher modification function for customers on design and technology

Page 58: Athletic Shoes Industry

How to improve to rank no.1 in this market?

58

• Adidas should improve its product lines substantially as variation in products could lead to better and improved sales which form a major objective of any business organization.

• Adidas should concern more on innovation along with strategic partnership, Now, Adidas signed a contract with Samsung to produce a shoe + phone promotional campaign. In this strategic partnership, both the companies developed a phone to be used with shoes during training

• Improve brand association of professionals with Adidas is that it has a culture of technology and has a history of achieving a strong position in the minds of target customers.

• Adidas should work towards improving market share and being at par with Nike which is currently the world leader in Athletic footwear. Adidas should focus on roping in more celebrities to promote their products

Page 59: Athletic Shoes Industry

PUMA

Page 60: Athletic Shoes Industry

Puma core value

• Design innovation and inclusiveness, and communicated through all consumer touch points, from product to distribution to marketing

Page 61: Athletic Shoes Industry

Puma history • 1924 - the company was funded in

Germany by Rudolph and Adolf Dassoer. Originally Puma shoes wore by many Olympic athletes.

• 1948 – The brothers split their business, Adolf called his firm Adidas. Rodolf called his new firm Ruda( from Rudolph Dassler), after changed its name to Puma

• 1950 – Puma gains attention for the development of their soccer shoes.

Page 62: Athletic Shoes Industry

Puma history

• 1960 – Puma becomes the first sports shoes manufacturer to use the vulcanization production technique. To support Puma athletes in showing top performances.

• 1986 – Puma issue IPO on the Frankfurt stock exchange• 1998 – Puma merges sport and fashion by collaboration

with designer Jil Sander.

Page 63: Athletic Shoes Industry

Puma history

• 2001 – Puma acquires Tretorn Group.• 2007 – more than 60% of company shares are acquired

by French luxury goods company PPR(owns Gucci and Yves Saint Laurent).

Page 64: Athletic Shoes Industry

Puma segment

• Puma's market segmentation targets unique, exclusive, imagination consumers who attractive originality.

Page 65: Athletic Shoes Industry

Puma segment

• In the dynamic changing consumer market, Puma intent to surprise consumers by constantly delivering the unexpected and challenging perceptions that continues to be a defining representative in the world of sports.

Page 66: Athletic Shoes Industry

Puma target group

• Puma target market is for the ages 15-30 which is the age when a person is sporty and active the gender is for both female and male with a range of females and males sports clothing, shoe wear even a perfume line.

Page 67: Athletic Shoes Industry

Puma position

• Puma position themselves as the creative leader in Sportlifestyle gives us the opportunity and the responsibility to contribute to a better world for the generations to come

Page 68: Athletic Shoes Industry

Puma mission

• Puma mission is to become the most desirable and sustainable Sportlifestyle company in the world.

Page 69: Athletic Shoes Industry

Puma vision

• Puma.Creative– the core competency by co-ordinate of different creative and

artists department • Puma.Safe

– comprises of initiatives and commitment for environmentalprotection and improved working environment. Puma lunched many programs implementing cleaner, safer and more sustainable systems and processes within the supply chain.

• Puma.Peace– to supports the global Day of Ceasefire or The International Day

of Peace known as World Peace Day on September 21 every year. The idea is the power of sports would persuade people to get into peace.

Page 70: Athletic Shoes Industry

Puma vision

Puma sustainability strategy

Page 71: Athletic Shoes Industry

Puma strategy

• Puma specific on sportlifestyle original in sport then combine to lifestyle by fashion approaches. The strategic objectives and related expansion targets this long-term strategic objective is to be achieved through three ways:

Page 72: Athletic Shoes Industry

Puma strategy

• First, Product expansion both develop existing product and expand to new product. Develop existing product the entire sportlifestyle from sport to fashion base on eliminate weakness and improve design. Expand to new product need to distinguish the Puma brand from the market and from competition in a unique manner.

Page 73: Athletic Shoes Industry

Puma strategy • Second, Geographic expansion, Puma aims expansion both in

the wholesale and in its own retail business. Additional goal is to terminate the major distribution licenses and to consolidate the business. The targeted expansion strategy in conjunction with to be obvious virtualization of business processes should lead to get more strengthen and expansion of the share of retail operations in consolidated sales.

Page 74: Athletic Shoes Industry

Puma strategy

• Third, Expansion with Non-Puma Brands, In addition to the brand Tretorn (since 2001) Puma does not rule out expansion with non-Puma brands. And acquisition if that brand can increase sustainable of the company.

Page 75: Athletic Shoes Industry

Marketing Mix for Puma

• PRODUCT – Puma shoes is sport lifestyle so their need to have fresh design in order to provide the best shoes to their customer.

Page 76: Athletic Shoes Industry

Marketing Mix for Puma• PRICE – Puma price base on premium segment. For premium brand

like Puma if they set their price too low it would destroy brand reputation. Product warranty for online they provide half-month warranty to every customer to gain customer loyalty, that If customer not happy for any reason have been seen after purchase we will exchange with a new pair of shoes in order to create brand image.

Page 77: Athletic Shoes Industry

Marketing Mix for Puma

• PLACE – Traditional sale is customer come to outlet and buy, customer can find product that fit, color and style to them.

• Online shopping provide more convenience to customer and give more advantage such as extensive online catalog, current news on Puma, newest items.

Page 78: Athletic Shoes Industry

Marketing Mix for Puma

• PROMOTION – Stimulate sale volume by launch new promotion. Package design involves the development of a container and a graphic design for a product. Packaging function is to protecting product from damage and it can add value to product by concern about environment sustainable.

Page 79: Athletic Shoes Industry

Why Puma is no.3 of sport shoes market?

• Puma still very low brand awareness, low market share , low advertising

• Puma brands have revealed they are enthusiastic to respond to the great eco-challenge announced by Greenpeace, aiming to annihilate the usage and disposal of hazardous chemicals until 2020.

Page 80: Athletic Shoes Industry

How Puma can improve business performance in these market?

• In economic downturn Puma should do two approaches. • First increase investment into develop new product.

Page 81: Athletic Shoes Industry

How Puma can improve business performance in these market?

• Second Geographical Expansion. If Puma can expand into Asia they will get a lot of market share.

Page 82: Athletic Shoes Industry

How Puma can improve business performance in these market?

• Puma should use Flanking attack and Bypass attack. Use flanking attack to attack the leaders’ weakness, for example one huge weakness with the NIKE Company is that they fail to see problems in relation to their labor and factory conditions. So Puma set their employee is first priority, like Puma talent management and International leadership program.

Page 83: Athletic Shoes Industry

How Puma can improve business performance in these market?

• Overview of International Leadership Program.

Puma talent management

Page 84: Athletic Shoes Industry

How Puma can improve business performance in these market?

• Bypass attack initiate new product into new market.

Page 85: Athletic Shoes Industry

How Puma can improve business performance in these market?

Product Table Prototype for Puma Black Station Store in

Tokyo

Puma phone

Page 86: Athletic Shoes Industry

Analysis

NIKE“performance driven style”

ADIDAS“sport performance”“sport heritage” “sport style”

PUMA“active lifestyle”

Page 87: Athletic Shoes Industry

NIKE ADIDAS PUMA

Reason for being To bring inspiration and innovation to every athlete in the world

Improving every athlete’s performance through innovation

Mixing the influences of sports, lifestyle and fashion

Value proposition Just do it Perform at the highest level Fits your active lifestyle

Reasons to believe - Footwear technology platforms (shox, air, airmax, zoom air)- Cutting edge performance / lifestyle apparell- Mass customization (NIKE ID)- Full line of performance / lifestyle accessories- Digital / Physical Experiences (Co-branding with IPOD)- Social responsibility (Livestrong, United Nations programs)- Branded retail experiences (Niketown)- Event sponsorships (marathons, Olympics)

- Footwear technology innovations- Automatic customization (Adidas1)- Co-developed celebrity lines (Stella McCartney)- Classic styles, tradition and heritage- Mass Customization (Adicolor)

- Distinctive trend setting styles- Branded retail experiences (concept stores)- Co-developed celebrity lines (Turlington / Nuala)- Co branding partnerships (Ferrari)- Partnerships with famous designers (Starck, Wanders)- Mass customization (Mongolian bbq)- Promotional events (beats & treats)

Persona Athletic, influential, outgoing, fresh, aggressive, hi-tech, futuristic, retro cool

Clear, orderly, practical, hi-tech, classic, sophisticated, sincere

Elegant, colorful, fresh, spontaneous, individual, metropolitan, international

Associations Athletes at the top of their respective sport (Michael Jordan, Tiger Woods, Lance Armstrong)Unfair labor practices

Elite Soccer players, soccer teams, NBA starsHip hop artists (Run DMC)Mainstream sports

- Fashion brands (Gucci, Armani, Dolce & Gabbana)- Fringe / extreme sports- Music artists & movie stars

Range of authority Footwear, apparel, equipment in multiple categories

High performance footwearPerformance & casual apparel

Performance & casual footwearApparel & accessories

Audience All athletes - anyone with a body Anyone who plays sports Anyone who leads an active lifestyle

Relationship Fellow athlete Respected coach Hip friend who shows you a good time

Page 88: Athletic Shoes Industry

Soccer Shoes Comparison

August 2009 Soccer Shoes offers:

• NIKE- 15 models- Ranging price $30-$190- Special Nike ID customizable feature- Lightweight nature and durability- Indoor and outdoor models

• ADIDAS- 50 models- Ranging price $55-$220- Equipped with PowerPulse- Indoor and outdoor models

• PUMA- 30 models- Ranging price $25-$200- “Lace Wrap” System- Indoor and outdoor models

Page 89: Athletic Shoes Industry
Page 90: Athletic Shoes Industry

BRAND IMAGE

Page 91: Athletic Shoes Industry

RECOMMENDATION

• Recommendations for the Puma in order to strengthen its brand image further include the revision of strategies to be the main partner/sponsor of the Mega Events like Olympics and Football World cups etc. besides other integrated Marketing Communication efforts. Brand Message is required to be communicated all around and these forums will help the Puma in creating Brand Awareness which ultimately results in strong brand image for Puma and help Puma in achieving its targets in all areas e.g. sale, market share and enhanced profits.

Page 92: Athletic Shoes Industry

92